A customer's credit card is accidentally charged twice, and the overcharged amount is deposited to the seller's bank accounts. The mistake is caught four days later and reversed. What is the best way to do the accounting for these transactions?
One of the two charges is correct and is used to pay off an open invoice, clearing the accounts receivable. Where should the second charge that is in mistake go? Would it be better to make this deposit an Other Current Asset or Other Current Liability up until it is cleared by the credit to the customer's card?